Answer:
Variable cost Per Unit $2.50
Explanation:
Total cost at high activity = $8100
Total Cost at Low activity = $3600
Total Units at high activity = 2400
Total Units at low Activity = 600
Variable Cost Per Unit = (High activity total Cost - Low activity total cost ) / (High Activity unit - low activity units)
Variable cost per unit = ($8100 - $3600) / (2400 - 600) = $4500 / 1800 = $2.50
Answer:
Fixed
Explanation:
The government keeps the exchange rate FIXED the the same rate.
Answer:
1)
Debit Cash/Bank 27,000 (4,500 shares x $6 per share)
Credit Common Stock 13,500 (4,500 shares x $3 per share)
Credit Paid-In Capital in Excess of Stated Value—Common 13,500 (4,500 shares x $3 per share)
2)
Debit Cash/Bank 135,000 (4,500 shares x $30 per share)
Credit preferred Stock 135,000 (4,500 shares x $30 per share)
Explanation:
any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"
Unfortunately, you failed to include the table.
A tax cut results in an increase in aggregate demand. The total demand for goods and services increases by more than a dollar for every dollar the government reduces the levy. The multiplier effect is the name of this effect.
A tax decrease increases the income of households. Spending increases as consumer income does. The companies that make consumer products hire more people and make more money as consumer spending increases. Consumer spending is once again stimulated by higher income and profits. The multiplier effect is the overall impact of the tax change on overall demand.
A tax reduction boosts overall demand for goods and services, but it also raises interest rates. A tax decrease that increases income also increases demand for money. Interest rates rise in tandem with the rising demand for money.
The number of products and services requested decreases as interest rates rise. It's easy to understand why. Borrowing costs increase when interest rates are high. Investment spending consequently decreases. Consequently, a tax cut boosts the demand for goods.
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The right question is:
Which of the following helps explain how the multiplier and crowding-out effect impact the size of the shift in aggregate demand from a tax change?
a. Tax cuts stimulate consumer spending, and earnings and profits rise, which further stimulates consumer spending with the multiplier effect.
b. The higher income leads to an increase in the demand for money, which tends to lead to higher interest rates.
c. The higher interest rates make borrowing more costly and reduce investment spending the crowding-out effect.
d. All of the above
